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Economic integration and industrial location: the case of Spain before World War I

Author

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  • Daniel A. Tirado
  • Elisenda Paluzie
  • Jordi Pons

Abstract

During the second half of the 19th century, Spain's industrial geography underwent radical change. In Jordi Nadal's words, 'Catalonia became Spain's factory'. This gradual geographical concentration of industrial activity coincided with another process: the integration of the Spanish economy. The purpose of this paper is to analyse the determinants of the localization of industrial activity in Spain during the second half of the 19th century and the effects of economic integration on Spain's industrial geography. To this end, we first review the historical analysis of these changes and present evidence on the process of market integration and industrial concentration by constructing a range of measures of industrial specialization and geographical concentration. Second, we perform an econometric analysis of the determinants of industrial location at two points in time, 1856 and 1893, using spatial econometrics techniques. Our results are consistent with the hypotheses of trade theories. During the second half of the 19th century, Spain became an integrated economy and industrial activity was concentrated in a limited number of territories characterized by a comparative advantage in human capital endowments, a favourable geo-economic position, and initial specialization in sectors showing scale economies. Copyright 2002, Oxford University Press.

Suggested Citation

  • Daniel A. Tirado & Elisenda Paluzie & Jordi Pons, 2002. "Economic integration and industrial location: the case of Spain before World War I," Journal of Economic Geography, Oxford University Press, vol. 2(3), pages 343-363, July.
  • Handle: RePEc:oup:jecgeo:v:2:y:2002:i:3:p:343-363
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    Cited by:

    1. Stephen J. Redding & Esteban Rossi-Hansberg, 2017. "Quantitative Spatial Economics," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 21-58, September.
    2. Elisenda Paluzie & Jordi Pons & Javier Silvestre & Daniel Tirado, 2009. "Migrants and market potential in Spain over the twentieth century: a test of the new economic geography," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(4), pages 243-265, December.
    3. Ottaviano, Gianmarco & Thisse, Jacques-Francois, 2004. "Agglomeration and economic geography," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 58, pages 2563-2608 Elsevier.
    4. Kristian Behrens, 2011. "International Integration And Regional Inequalities: How Important Is National Infrastructure?," Manchester School, University of Manchester, vol. 79(5), pages 952-971, September.
    5. Martinez-Galarraga, Julio, 2012. "The determinants of industrial location in Spain, 1856–1929," Explorations in Economic History, Elsevier, vol. 49(2), pages 255-275.
    6. Combes, Pierre-Philippe & Lafourcade, Miren & Thisse, Jacques-François & Toutain, Jean-Claude, 2011. "The rise and fall of spatial inequalities in France: A long-run perspective," Explorations in Economic History, Elsevier, vol. 48(2), pages 243-271, April.
    7. Redding, Stephen, 2009. "Economic geography: a review of the theoretical and empirical literature," LSE Research Online Documents on Economics 25500, London School of Economics and Political Science, LSE Library.
    8. Julio Martínez-Galarraga & Elisenda Paluzie & Jordi Pons & Daniel A. Tirado-Fabregat, 2008. "Agglomeration and labour productivity in Spain over the long term," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 2(3), pages 195-212, October.
    9. Julio Martinez-Galarraga & Daniel A. Tirado & Rafael González-Val, 2015. "Market potential and regional economic growth in Spain (1860–1930)," European Review of Economic History, Oxford University Press, vol. 19(4), pages 335-358.
    10. Rosés, Joan Ramón & Martínez-Galarraga, Julio & Tirado, Daniel A., 2010. "The upswing of regional income inequality in Spain (1860-1930)," Explorations in Economic History, Elsevier, vol. 47(2), pages 244-257, April.
    11. Herranz-Loncan, Alfonso, 2007. "Infrastructure investment and Spanish economic growth, 1850-1935," Explorations in Economic History, Elsevier, vol. 44(3), pages 452-468, July.
    12. Leonardo Monasterio & Eustáquio Reis, 2008. "Mudanças na Concentração Espacial das Ocupações nas Atividades Manufatureiras no Brasil – 1872-1920," Discussion Papers 1361, Instituto de Pesquisa Econômica Aplicada - IPEA.
    13. María Ayuda & Fernando Collantes & Vicente Pinilla, 2010. "From locational fundamentals to increasing returns: the spatial concentration of population in Spain, 1787–2000," Journal of Geographical Systems, Springer, vol. 12(1), pages 25-50, March.
    14. Jenifer Ruiz-Valenzuela & Rosina Moreno-Serrano & Esther Vaya-Valcarce, 2006. "Concentration of the Economic Activity: Comparing Methodologies and Geographic Units," ERSA conference papers ersa06p197, European Regional Science Association.
    15. Julio Martinez Galarraga & Elisenda Paluzie Hernandez & Jordi Pons Novell & Daniel Aurelio Tirado Fabregat, 2007. "Agglomeration and labour productivity in Spanish industry: a long-term analysis," Working Papers in Economics 175, Universitat de Barcelona. Espai de Recerca en Economia.
    16. María Ayuda & Fernando Collantes & Vicente Pinilla, 2010. "Long-run regional population disparities in Europe during modern economic growth: a case study of Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 273-295, April.
    17. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311.
    18. Rafael González-Val & Daniel A. Tirado-Fabregat & Elisabet Viladecans-Marsal, 2017. "Market potential and city growth: Spain 1860–1960," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(1), pages 31-61, January.
    19. Franch Auladell, Xavier & Marti-Henneberg, Jordi & Puig-Farré, Josep, 2013. "A spatial analysis of patterns of growth and concentration of population based on homogeneous population censuses: Spain (1877-2001)," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 25, pages 43-65.
    20. Jordi Pons Novell & Javier Silvestre & Daniel Aurelio Tirado Fabregat & Elisenda Paluzie Hernandez, 2004. "Were Spanish migrants attracted by industrial agglomerations? An analysis for the interwar years in the light of the new economic geography," Working Papers in Economics 121, Universitat de Barcelona. Espai de Recerca en Economia.
    21. Alfonso Díez-Minguela & Julio Martínez-Galarraga & Daniel A. Tirado Fabregat, 2013. "Why did Spanish regions not converge before the Civil War? Agglomeration and (regional) growth revisited: Spain, 1870-1930," Working Papers. Serie EC 2014-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    22. Julio Martínez-Galarraga, 2014. "Market potential estimates in history: a survey of methods and an application to Spain, 1867-1930," Working Papers 0051, European Historical Economics Society (EHES).
    23. Elisenda Paluzie, 2010. "The Costs and Benefits of Staying Together: The Catalan Case in Spain," Chapters,in: The Political Economy of Inter-Regional Fiscal Flows, chapter 14 Edward Elgar Publishing.
    24. Kandogan, Yener, 2014. "The effect of foreign trade and investment liberalization on spatial concentration of economic activity," International Business Review, Elsevier, vol. 23(3), pages 648-659.
    25. Henning, Martin & Enflo, Kerstin & Andersson, Fredrik N.G., 2011. "Trends and cycles in regional economic growth," Explorations in Economic History, Elsevier, vol. 48(4), pages 538-555.

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